Graham really didn’t care about the kind of business he was buying, in his world every business had a price at which it was a bargain.
Graham was focused on finding companies trading at less than half of what they held in cash. He called it “buying a dollar for 50 cents.”
Graham had other standards as well such as never paying more than 10 times company’s earnings and selling the stock if it was up 50%. if it didn’t go up within two years, he would sell it anyway.
122
762 reads
CURATED FROM
IDEAS CURATED BY
Similar ideas to Graham's View
Because these business economics working in their favor, there was zero chance of them ever going into bankruptcy.
The lower stock stock price also meant a greater upside potential for gain.
Warren realized t...
Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.
However, when investing on individual stocks make sure of the ff:
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates